Careless Driving Insurance Increase

Careless driving can have serious financial repercussions on your auto insurance in Ontario. Under the Ontario Highway Traffic Act, being convicted of careless driving means that your insurance premiums are likely to go up significantly. Rates often increase because insurers view careless driving as risky behaviour, which leads to higher costs for them. Even a single careless driving charge will affect your insurance premiums for several years.

Impact on Insurance Premiums and High-Risk Status

Careless driving can cause a sharp rise in insurance premiums. Insurers consider it an indicator of risky behaviour. When a driver is involved in careless driving incidents, they are often placed in the high-risk category.

High-risk drivers typically face higher premiums due to greater claims likelihood. Even a single incident of careless driving can lead to significant rate increases. Insurers maintain records of driving incidents, and these records play a critical role in assessing risks and setting premium rates. Insurance companies adjust premiums based on these records, meaning an incident can continue to affect rates for several years. 

On average, insurance premiums can rise anywhere from 50% to more than double after a careless driving charge. This increase varies depending on the insurance provider and the individual’s driving history.

Importance of a Clean Driving Record for Insurance Renewal

A clean driving record is vital for affordable insurance renewal rates. Insurers review driving histories when policies come up for renewal. Multiple infractions such as careless driving can lead to higher renewal rates or, in severe cases, non-renewal of the policy.

Some insurers may refuse to renew policies, forcing drivers to seek coverage from other providers who cater to high-risk individuals, often at much higher rates.